IPWireless and Huawei to Validate IMB-Based Chipsets Solutions for Network Deployment

Event Summary

July 20, 2010 – IPWireless, a chipset provider of 3GPP technology for new applications and markets, and Huawei, a developer of next generation infrastructure equipment have announced that the two companies have signed a co-operation agreement with respect to the production of each party’s Integrated Mobile Broadcast (IMB) technology. This co-operation includes interoperability testing (IOT) and service provider trials. IMB is capable of streaming live video and storing popular content on the device for later consumption – both resulting in significant offloading of data traffic from existing 3G networks. IMB was defined in the 3GPP release 8 standards, and was recently endorsed by the GSMA as their preferred method for the efficient delivery of broadcast services. The companies are aiming for interoperability testing in Q3 2010.

Quick Take

Analytical Summary

• Current Perspective: Moderate on the IPWireless and Huawei partnership, because signing a cooperation agreement for IOT and field trials in and of itself is generally not significant enough to cause a change in either company’s position within their respective markets. Should this approach take off as a preferred method of deploying IMB services, both vendors will be well positioned. At a minimum the IOT and field trials will provide a validation of the technology and its ability to deliver broadcast solutions for service and mobile TV support.

• Vendor Importance: High to both IPWireless and Huawei, because each is contributing and drawing from one another’s intellectual property (IP) and experience to help create a solution that is not only IOT thoroughly, but should also be optimized and represent a best practices solution that should produce future IMB service wins for both vendors. Although details of the actual form of the partnership and additional roadmap information were not provided, the companies obviously feel this is a good investment of time and resources. Both will need to expand their respective sphere of IOT efforts to other vendors as well to show a wider range of multivendor interoperability.

• Market Impact: Moderate on the mobile device silicon market and the IMB sub-segment because this segment is just emerging as a result of being defined in the 3GPP Release 8 and endorsed by GSMA as a preferred method for supporting broadcast services. IPWireless and Huawei are anticipating the IOT to commence in the Q3 2010 time frame to capitalize on the early IMB field trials. Currently Orange and Vodafone announced in June 2010 in the UK that they will initiate an IMB pilot in October 2010.

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